The bill proposes the adoption of the Uniform Fiduciary Income and Principal Act in Alaska, replacing the existing Alaska Principal and Income Act. This legislation aims to clarify fiduciary income and principal administration, enhance probate court jurisdiction, and streamline trust administration processes. Key amendments include the insertion of AS 13.39 into the Alaska Statutes, which outlines fiduciary duties, judicial review processes, and the allocation of income and principal. The bill allows fiduciaries to convert income trusts to unitrusts without court approval, provided they follow specific procedures, and emphasizes the fiduciary's duty to act impartially while ensuring beneficiaries are informed.

Additionally, the bill establishes clear guidelines for fiduciaries regarding the allocation of receipts and disbursements from trusts and estates, specifying how to categorize income and principal from various sources, including minerals, water, and timber. It clarifies the responsibilities of fiduciaries in managing distributions, ensuring fair treatment of beneficiaries, and maintaining the integrity of the trust or estate. The legislation also repeals outdated sections of the current law and introduces new provisions that apply to trusts or estates created after the Act's effective date, while allowing existing fiduciaries to continue using previous methods until they acquire new interests. Overall, the bill seeks to modernize the management of trusts and estates in Alaska, providing clearer guidelines for fiduciaries and beneficiaries alike.

Statutes affected:
SB0234A, AM SB 234, introduced 02/04/2026: 13.06.120, 13.06.110, 13.36.335, 13.16.540, 13.16.545, 13.16.560, 13.39.103, 13.36.035, 13.39.201, 13.39.203, 13.39.303, 13.39.401, 13.39.703, 13.39.202, 13.39.408, 13.39.413, 13.39.302, 13.39.390, 13.36.080, 13.36.100, 13.39.204, 13.39.205, U.S.C, 13.39.304, 13.39.305, 13.39.306, 13.39.307, 13.39.309, 13.39.308, 13.39.407, 13.39.410, 13.39.412, 13.39.402, 13.39.403, 13.39.416, 13.39.415, 13.39.414, 13.39.404, 13.39.417, 13.39.502, 13.39.405, 13.39.406, 13.39.409, 13.39.411, 13.39.503, 13.39.501, 13.39.504, 13.39.601, 13.39.505, 13.39.506, 13.39.507, 13.39.701, 13.39.602, 13.39.702, 13.39.801, 13.39.802, 13.39.980, 13.36.390, 13.39.990, 34.40.110, 13.38.200, 13.38.210, 13.38.220, 13.38.300, 13.38.310, 13.38.320, 13.38.330, 13.38.340, 13.38.350, 13.38.360, 13.38.370, 13.38.380, 13.38.390, 13.38.400, 13.38.410, 13.38.420, 13.38.430, 13.38.435, 13.38.440, 13.38.450, 13.38.460, 13.38.470, 13.38.480, 13.38.490, 13.38.500, 13.38.510, 13.38.550, 13.38.560, 13.38.570, 13.38.600, 13.38.610, 13.38.620, 13.38.630, 13.38.640, 13.38.650, 13.38.660, 13.38.670, 13.38.680, 13.38.690, 13.38.700, 13.38.710, 13.38.720, 13.38.730, 13.38.740, 13.38.750, 13.38.800, 13.38.810, 13.38.820, 13.38.830, 13.38.840, 13.38.850, 13.38.860, 13.38.900, 13.38.910, 13.38.980, 13.38.990